Question

1. Statistics Canada reports the following annual average rates of growth over each of three periods:

                                    1961-1980       1980-2000       2000-2011

real GDP (Y)               5.0%                3.2%                1.7%

labour (N)                   2.9%                2.2%                1.3%

capital (K)                   5.7%                3.9%                3.4%                

It has been estimated that the elasticity of output with respect to capital is α_k= 0.34 and the elasticity of output with respect to labour is α_n= 0.66.

                                    1961-1980       1980-2000       2000-2011

real GDP                     5.0%                3.2%                1.7%

labour                          1.914%           1.452%            0.858%

capital                         1.938%            1.326%            1.156%

productivity                1.148%            0.42%              -0.31%

QQQQ

Write, in your own words and based on the table you have filled up in question 2 above, a super-short history of economic growth in Canada over these 50 years (1961-2011). That is, describe why the Canadian economy was growing and how the reasons for the growth have changed over time.

QQQQ

*** I only want the answer to the area written between QQQQ **** ( its bold )

Answer 1